Subscriber login Close [x]
remember me
You are not logged in.

Alcohol wholesaler scheme 'massive' boost for legitimate traders and retailers

Published:  11 December, 2014

A new registration scheme for alcohol wholesalers will be a "massive boost for legitimate traders and taxpayers", and a "positive step" for retailers, say trade bodies. 

A new registration scheme for alcohol wholesalers will be a "massive boost for legitimate traders and taxpayers", and a "positive step" for retailers, say trade bodies. 

The Alcohol Wholesaler Registration Scheme which is set for inclusion in the Finance Bill 2015, is intended to stamp out duty evasion on beers, wines and spirits, which costs the Treasury £1.3 billion a year in lost revenue.

Drinks warehouseThe Alcohol Wholesalers Registration Scheme is intended to stamp out duty evasion

The scheme will provide retailers and enforcement agencies with more information about the legitimacy of alcohol wholesalers and make it more difficult for rogue wholesalers to sell illicit alcohol.

It will also give HMRC new powers to tackle any wholesaler that does not sign up. This will involve seizing any alcohol on the premises of the unregistered wholesaler whether duty has been paid or not. Serious offenders will receive fines of £5,000 or more.

The move will also "remove the excuse of ignorance" from any off-trade or on-trade outlet found selling alcohol from an unregistered wholesaler. A new online checking system will be put in place to allow retailers, restaurants, bars, pubs and hotels to check quickly whether a wholesaler is registered.

The Federation of Wholesale Distributors chief executive James Bielby said: "This is a major step towards identifying rogue operators and restoring control of alcohol distribution to legitimate wholesalers. We have worked hard to bring this issue to the government's attention, and although compliance with the scheme will place an operational burden on our members, it really is a short-term pain for a long-term gain."

James Lowman, chief executive of the Association of Convenience Stores, said: "This is a really positive step for local shops and wholesalers in the battle against the illicit trade, which accounted for £1.3 billion in lost revenue to the Treasury in 2012-2013, and hurts legitimate businesses. Retailers will be able to check with greater certainty that the wholesalers they purchase alcohol from will be dealing in duty paid products.

"We will continue to work with HMRC on the regulations and supporting guidance to ensure that application and enforcement of the AWRS does not place extra burdens on retailers". 

The Finance Bill was published yesterday here.

Keywords: